Pharmaceutical Markets: Public and Private Roles and Failures

The article presents an analysis of the specific character of pharmaceutical markets from the point of view of participating parties or “players” and the failures those suffer, in view of the efficiency of the market outcome. The proposition which is defended is that it is not only the private markets and the stakeholders participating in them, who are at times unable to ensure the efficient allocation of resources (as demonstrated successfully by standard economic theory), but also that the regulating centre, the state, too, is responsible for a series of failures and defects, which are typical of the pharmaceutical sector. The two kinds of markets, private and political, as well as their failures must be measured impartially and there must be sought the best combination in choosing a suitable policy.